IMF Optimistic On India But Risks Remain, Need To Provide Targeted Support

At the IMF Spring Meetings in Washington, D.C., APAC Director Krishna Srinivasan expresses cautious optimism on India’s growth outlook, projecting it at 6.5% despite a broader global slowdown. He attributes the resilience to strong momentum entering the year, supported by past tax reforms such as GST and income tax changes that boosted consumption, along with lower-than-expected U.S. tariffs. However, he cautions that risks remain, particularly if global energy shocks persist for longer than expected, which could lead to downward revisions. While India has maintained fiscal prudence and avoided broad subsidies, Srinivasan stresses the importance of targeted and temporary policy support going forward.